To Compute Inventory on a Lower-Of-Cost or Market Basis Using

question 51

Multiple Choice

To compute inventory on a lower-of-cost or market basis using the retail inventory method:

• A) Markups are excluded in the computation of the cost ratio.
• B) Markups and markdowns are included in the computation of the cost ratio.
• C) Markups and markdowns are excluded in the computation of the cost ratio.
• D) Markdowns are excluded in the computation of the cost ratio.